The main activity of Biofuels is the large scale production and exploitation of biodiesel and glycerine following the construction and commissioning of the initial plant.

Biodiesel is produced from vegetable oils and, as an environmentally friendly product, can make a significant contribution towards reducing green house gases and meeting Kyoto targets.



RNS's from BFC can be viewed at:

http://www.uk-wire.com/cgi-bin/index?search_type=3&words=bfc&go.x=17&go.y=8

http://www.biofuelscorp.com/

Biofuels brings new energy to team
By Ruth Sullivan
Published: February 2 2005 02:00 | Last updated: February 2 2005 02:00

Biofuels Corporation, which is building Europe's biggest biodiesel plant on Teesside, is strengthening its board and management by taking on Robert Green as finance director.


John Charlton, who joined the board as part-time finance director to work on the company's flotation on Aim, will remain on the board and help in the handover.

The appointment comes as the company is aiming to become one of Europe's largest producers of biodiesel, a version of diesel based on vegetable oil. It expects to complete the Teesside plant by July.

Sean Sutcliffe, chief executive, said: "The price outlook for palm oil and ultra-low sulphur diesel remains positive, re-enforcing the medium-term strength of the company, although it has in the short term resulted in additional costs under hedge arrangements put in place around the time of the flotation."

Mr Green, 49, was a former finance director at Wilson Connolly Holdings. Ruth Sullivan


http://news.ft.com/cms/s/bfb1b3d4-74c0-11d9-a769-00000e2511c8.html

wilbs

Well, gallick, I was brought up in a nursery and then later did physics A level - a combination of the two must have stuck. Philosophically renewable energy is a) good per se and b) involves growing green things which is i) nice and ii) helps the CO2 problem.

Am still a bit puzzled how an organic material (made of C, H, O) can produce LESS CO2 when it has also produced less residual nasties. I would have thought less residuals meant more was efficiently oxidised into H2) and CO2 - i.e. more proportionately CO2. Maybe the thermal conversion (from chemical ennergy to heat energy) is more efficient, so uses less overall than mineral diesel.

I particularly like DOO - you all must look at the recent RNS progress - India, Africa, Madagascar, China. It's SP is starting to bubble too, but may be a slightly slower burn (sic) than BFC.

>> stockdog

I have no answers to that one, and I did Physics and Chemistry A levels - although that seems a different world ago!

Will check out DOO.

regards
gk

Looks like some more ethanol has been fuel-injected into the SP again today.

>> stockdog - I like the look of the DOO chart. I will have to do some background reading. Do they have a website?

rgrds
gk

Wow, I liked the look of this one 6 months ago, shame I didnt have any spare cash at the time. Well done you guys who are in though, its going great guns...

gallick - www.d1plc.com does the trick.

Interesting question, can BFC use Jatropha beans in its plant on Teesside - could be cheaper rawstack than palm oil - given both have to be transported from tropical regions??

Food for thought!

Let me know yours.

New high posted today.

Thanks for that stockdog.

I see the goverment are giving 20% tax relief on Biofuels

>>davem

That is a substantial part of the reason for why this stock is going ballistic.

rgrds
gk

Tipped as one of the blue sky portfolio in Shares magazine this week. I will try to get hold of the article.

rgrds
gk

Gist of the article is that the government have introduced a 20p per litre tax discount in the UK for biodiesel. This subsidy is worth over 50 mill per year to Biofuels. Profits could be greater than expected as palm oil prices have fallen.

The current year to March 2005 sees losses widening to around 4 million. In the next 2 years profits should increase to 6 million and 10 million respectively. This gives an untaxed PE of 7.6 next year dropping to 5 in 2007 which one fund manager (not named) describes as dirt cheap.

rgrds
gk

Are the 6m and 10m profit forecasts made on the basis of 20p per litre duty discount?

So if the windfall 50m is not included in the forecasts, then we are looking at 56m and 60m for the first two years.

I can't see this company going into business with the expectation of making a loss of 44m and then 40m in the first two years!

The 50 mill figure does I agree need further explanation. Surely it depends on production levels, input costs etc. Will dig deeper.

Price rising again.

rgrds

Anyone who has a position with both these biodiesel co's -

Watch out for the DOO (D1 Oils) intellectual property dispute over 725,000 payment to SIF ex partner.

See RNS today.

Hence sharp drop in SP. However, full amount was provided in listing prospectus and now DOO claim not payable in full. So what's at risk should be no more than legal fees. Both parties trying to resolve via mediation in first instance.

Interesting that new technology can incite such ardour - cf SEO's cc.

Palm oil price is 23% below what it was one year ago (FT).

Anyone know how price of palm oil compares with jotropha bean oil?

>>SD

I don't think they carry jotropha bean oil in the FT!

rgrds
gk

I understand it can stain terribly!